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trades on the New York Stock Exchange under the ticker symbol "KAI."
−Removed: Unless otherwise noted, references to 2023, 2022, and 2021 in this Annual Report on Form 10-K are to our fiscal years ended December 30, 2023, December 31, 2022, and January 1, 2022, respectively.
+Added: Unless otherwise noted, references to 2024, 2023, and 2022 in this Annual Report on Form 10-K are to our fiscal years ended December 28, 2024, December 30, 2023, and December 31, 2022, respectively.
Description of Our Business
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We expect that a significant driver of our long-term growth will be the acquisition of businesses and technologies that complement or augment our existing products and services or may involve entry into a new process industry.
−Removed: We have acquired several businesses in recent years and continue to pursue acquisition opportunities.
+Added: We completed acquisitions in each of our three reportable segments in 2024 and continue to pursue acquisition opportunities.
+Added: See Note 2 , Acquisitions, in the accompanying consolidated financial statements for further details regarding our 2024 acquisitions.
On January 1, 2024, we acquired Key Knife, Inc.
−Removed: and certain of its affiliates (collectively, Key Knife) pursuant to a securities purchase agreement dated December 22, 2023, for approximately $156.0 million in cash, subject to certain customary adjustments.
+Added: and certain of its affiliates (collectively, Key Knife) for $153.4 million, net of cash acquired and subject to a post-closing adjustment.
Key Knife is a global supplier of engineered knife systems for custom chipping, planing, and flaking solutions for wood products industries and is part of our Industrial Processing segment.
−Removed: On January 24, 2024, we acquired all of the outstanding equity securities of KWS Manufacturing Company, Ltd.
−Removed: (KWS), for approximately $84.0 million in cash, subject to certain customary adjustments.
+Added: On January 24, 2024, we acquired KWS Manufacturing Company, Ltd.
+Added: (KWS) for $79.4 million.
KWS is a leading manufacturer of conveying equipment for the bulk material handling industry and is part of our Material Handling segment.
−Removed: See Note 2 , Acquisitions, and Note 15 , Subsequent Events, in the accompanying consolidated financial statements for further details regarding our acquisitions.
+Added: On May 31, 2024, we acquired Dynamic Sealing Technologies LLC and affiliates (collectively, DSTI) for $53.6 million, net of cash acquired.
+Added: DSTI is a leading manufacturer of engineered fluid sealing and transfer solutions for rotating applications and is part of our Flow Control segment.
Business Segments and Products
−Removed: We report our financial results by combining operating entities into three reportable operating segments:
−Removed: Flow Control, Industrial Processing, and Material Handling.
+Added: We report our financial results by combining operating entities into three reportable segments consisting of our Flow Control segment, Industrial Processing segment, and Material Handling segment.
See Note 11 , Business Segment and Geographical Information, in the accompanying consolidated financial statements for financial information regarding our segments.
Flow Control Segment
−Removed: Through our Flow Control segment, we provide custom-engineered products, systems, and technologies that control the flow of fluids used in industrial and commercial applications to keep critical processes running efficiently in the packaging, tissue, food, metals, and other industrial sectors.
+Added: Through our Flow Control segment, we provide custom-engineered products, systems, and technologies that control the flow of fluids used in industrial and commercial applications to keep critical processes running efficiently in the packaging, tissue, food, metals, energy, and other industrial sectors.
The Flow Control segment consists of our fluid-handling and doctoring, cleaning, & filtration product lines.
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– Rotary joints:
−Removed: Our mechanical sealing devices, used with rotating shafts, allow the transfer of pressurized fluid from a stationary source into and out of rotating machinery for heating, cooling, or the transfer of fluid power.
+Added: Our mechanical sealing devices, used with rotating shafts, allow the transfer of pressurized fluid from a stationary source into and out of rotating machinery for heating, cooling, or the transfer of fluid power and data.
Our devices, installed inside rotating cylinders, are used to remove fluids from the rotating cylinders through rotary joints or unions located on either end of the cylinder.
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– Expansion joints:
−Removed: Our rubber, metal, fabric, and polytetrafluoroethylene (PTFE) expansion joints are used to compensate for movement in industrial piping systems due to thermal expansion, vibration and other causes.
+Added: Our rubber, metal, fabric, and other types of expansion joints are used to compensate for movement in industrial piping systems due to thermal expansion, vibration and other causes.
– Engineered steam and condensate systems:
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Doctoring, Cleaning, & Filtration
−Removed: We develop, manufacture, and market a wide range of doctoring, cleaning, and filtration systems and related consumables that continuously clean rolls to keep paper machines and other industrial processes running efficiently.
−Removed: Doctoring and cleaning systems are also used in other process industries such as carbon fiber, textiles, food, and metals.
+Added: We develop, manufacture, and market a wide range of doctoring, cleaning, and filtration systems and related parts and consumables that continuously clean rolls to keep paper machines and other industrial processes running efficiently.
+Added: Doctoring and cleaning systems are also used in other process industries such as carbon fiber, building materials, textiles, food, and metals.
Our principal doctoring, cleaning, and filtration products include:
– Doctor systems and holders:
−Removed: Our doctor systems clean papermaking rolls to maintain the efficient operation of paper machines and other equipment by placing a blade against the roll at constant and uniform pressure.
+Added: Our doctor systems clean papermaking and other continuous process rolls to maintain the efficient operation of paper machines and other equipment by placing a blade against the roll at constant and uniform pressure.
A doctor system consists of the structure supporting the blade and the blade holder.
– Doctor blades:
−Removed: We manufacture doctor and scraper blades made of a variety of materials including metal, bi-metal, and synthetic materials that perform a variety of functions including cleaning, creping, web removal, flaking, and applying coatings.
+Added: We manufacture doctor and scraper blades made of a variety of materials including metal, bi-metal, reinforced composites, and synthetic materials that perform a variety of functions including cleaning, creping, web removal, flaking, and applying coatings.
A typical doctor blade has a life ranging from eight hours to two months, depending on the application.
– Cleaning showers and fabric-conditioning systems:
−Removed: Our cleaning shower and fabric-conditioning systems assist in the removal of contaminants that collect on paper machine fabrics and roll surfaces.
−Removed: A typical paper machine has between three and 12 fabrics and multiple rolls.
−Removed: These fabrics can easily become contaminated with fiber, fillers, pitch, and dirt that can have a detrimental effect on paper machine performance and paper quality.
−Removed: Our cleaning shower and fabric-conditioning systems assist in the removal of these contaminants.
+Added: Our cleaning shower and fabric-conditioning systems assist in the removal of contaminants that collect on paper machine or other continuous process fabrics, belts, chains, and roll surfaces.
– Forming systems and wear surfaces:
We supply structures that drain, purify, and recycle process water from the pulp mixture during paper sheet and web formation.
−Removed: Our wear surfaces are used to remove water from the paper web as it travels across the structures in the forming section of the paper machine.
+Added: Similar processes such as non-wovens manufacturing and molded pulp application use our Forming systems.
+Added: Our wear surfaces are used to remove water from the paper web as it travels across the structures in the forming section of the paper machine or other continuous process.
– Water-filtration systems:
−Removed: We offer a variety of filtration systems and strainers that remove contaminants from process water before reuse and recover reusable fiber for recycling back into the pulp mixture.
+Added: We offer a variety of filtration systems and strainers that remove contaminants from process water before reuse and recover reusable fiber for recycling back into the pulp mixture, and for use in other fiber processes such as non-wovens manufacturing or building and construction materials applications.
Industrial Processing Segment
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In addition, we provide industrial automation and digitization solutions to process industries.
−Removed: The Industrial Processing segment consists of our wood processing and stock-preparation product lines.
+Added: The Industrial Processing segment consists of our wood processing and fiber processing (formerly referred to as stock-preparation) product lines.
Wood Processing
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We provide industrial automation, process technology, and project management services to help industrial companies digitally transform their operations.
−Removed: Stock-Preparation
+Added: Fiber Processing
We develop, manufacture, and market custom-engineered systems and equipment, as well as standard individual components, for pulping, de-inking, screening, cleaning, and refining primarily recycled fiber for preparation for entry into the paper machine, and recausticizing and evaporation equipment and systems used in the production of virgin pulp.
−Removed: Our principal stock-preparation products include:
+Added: Our principal fiber processing products include:
– Recycling and approach flow systems:
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Approximately 50% in 2024, 53% in 2023, and 55% in 2022, of our consolidated revenue were to customers outside the United States, principally in Europe, Asia and Canada.
−Removed: Our backlog of firm orders by segment are as follows:
+Added: Our backlog of firm orders by reportable segment are as follows:
(In millions) December 28, 2024 December 30, 2023
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We also rely on technical know-how, trade secrets, and trademarks to maintain our competitive position.
−Removed: We also enter into license agreements with others to grant and/or receive rights to patents, trademarks, and know-how.
+Added: We enter into license agreements with others to grant and/or receive rights to patents, trademarks, and know-how.
No particular patent, or related group of patents, is so important that its expiration or loss would significantly affect our operations.
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and foreign patents, including foreign counterparts to our U.S.
−Removed: patents, expiring on various dates ranging from 2024 to 2042, related to stock-preparation and wood processing systems and equipment.
+Added: patents, expiring on various dates ranging from 2025 to 2042, related to fiber processing and wood processing systems and equipment.
Material Handling Segment
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We believe that our employees are the core of our business, and we devote significant time and resources to their training and development.
−Removed: For more information, please reference our Corporate Sustainability Report, which is available at www.kadant.com.
+Added: For more information, please reference our Corporate Sustainability Report, which is available at kadant.com.
We maintain a safety-first culture grounded on the premise of eliminating workplace incidents, risks and hazards.
−Removed: We have created and implemented processes to help eliminate safety events by reducing their frequency and severity.
−Removed: Our commitment to safety is reinforced by our robust safety program and training.
−Removed: Talent, Development, Diversity and Inclusion
+Added: We have created and implemented processes to help elimi nate safety violations b y reducing their frequency and severity.
+Added: Our commitment to safety is reinforced by our robust safety program and ongoing training.
+Added: Talent and Development
The attraction, retention and development of exceptional employees is critical to our continued success.
−Removed: As part of these efforts, we strive to offer a competitive compensation and benefits program and to foster a safe and inclusive work environment where everyone feels respected, valued and empowered to do their best work.
−Removed: We embrace the diversity of our employees, including their unique backgrounds, experiences, and talents.
+Added: As part of these efforts, we strive to offer competitive compensation and benefits programs and to foster a safe and inclusive work environment where everyone feels respected, valued and empowered to do their best work.
+Added: We embrace the unique backgrounds, experiences, and talents of our employees.
Everyone is valued and appreciated for their distinct contributions to the growth and sustainability of our business.
−Removed: We strive to cultivate a culture of diversity and inclusion that supports and enhances our ability to recruit, develop and retain talent at every level.
+Added: We strive to cultivate a culture that supports and enhances our ability to recruit, develop and retain talent at every level.
As of December 28, 2024, we had approximately 3,500 full-time employees worldwide.
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Other than certain of our Canadian employees and typical works co uncils outside of the U.S., none of our employees are represented by labor unions or covered by a collective bargaining agreement.
−Removed: Subsequent to year-end 2023, with the acquisitions of Key Knife and KWS, we added approximately 300 full-time employees in North America.
−Removed: Our management team places significant focus and attention on matters concerning our human capital, particularly their diversity, capability development, and succession planning.
+Added: Our management team places significant focus and attention on matters concerning our human capital, particularly capability development and succession planning.
Accordingly, we regularly review talent development and succession plans for each of our functions and operating segments, to identify and develop a pipeline of talent to maintain business operations.
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Compensation and Benefits
−Removed: As part of these efforts, we strive to offer a competitive compensation and benefits program.
+Added: As part of these efforts, we strive to offer competitive compensation and benefits programs.
Our compensation and benefits program is designed to attract and retain talented individuals who possess the skills necessary to support our business objectives, assist in the achievement of our strategic goals and create long-term value for our stockholders.
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The SEC maintains a website that contains reports, proxy and information statements, and other information that are filed electronically by issuers with the SEC.
−Removed: The public can obtain any documents that we file with the SEC at www.sec.gov.
−Removed: In addition, we make available free of charge through our website at www.kadant.com our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and, if applicable, amendments to these reports filed with or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we electronically file these materials with, or furnish them to, the SEC.
+Added: The public can obtain any documents that we file with the SEC at sec.gov.
+Added: In addition, we make available free of charge through our website at kadant.com our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and, if applicable, amendments to these reports filed with or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after we electronically file these materials with, or furnish them to, the SEC.
We are not including the information contained on our website as part of this report, nor are we incorporating the information on our website into this report by reference.
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Selwood 56 Senior Vice President and Chief Accounting Officer (2015)
+Added: Colwell 59 Senior Vice President (2019)
Flynn 74 Senior Vice President (2019)
Thomas Andrew Blanchard 66 Vice President (2021)
−Removed: Colwell 58 Vice President (2019)
Westerhout 60 Vice President (2021)
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He served as an executive vice president and a co-chief operating officer from March 2018 to March 2019.
−Removed: From March 2013 to March 2018, he was an executive vice president and had supervisory responsibility for our stock-preparation, wood processing, and fiber-based products businesses.
+Added: From March 2013 to March 2018, he was an executive vice president and had supervisory responsibility for our fiber processing, wood processing, and fiber-based products businesses.
From September 2009 to March 2013, he was a senior vice president.
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Krause was head of commerce cloud commercial legal at salesforce.com, inc., a global SAAS software company, from July 2016 to December 2017.
−Removed: She previously served as assistant general counsel of Demandware, Inc., a global SAAS software company, from January 2014 to July 2016, prior to its acquisition by salesforce.com, and was assistant general counsel of Entegris, Inc., a provider of advanced materials and materials handling solutions, from 2011 to 2014.
+Added: She previously served as assistant general counsel of Demandware, Inc., a global SAAS software company, from January 2014 to July 2016, prior to its acquisition by salesforce.com, and was assistant general counsel of Entegris, Inc., a provider of advanced materials and materials handling
+Added: solutions, from 2011 to 2014.
Prior to 2011, Ms.
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Selwood held various financial positions at Arthur Andersen LLP and Genuity Inc.
+Added: Colwell has been a senior vice president since December 2024 and was a vice president from August 2022 to December 2024 and is responsible for our Industrial Processing segment.
+Added: Prior to that, he had supervisory responsibility for our wood processing business, which is part of our Industrial Processing segment, from July 2019 to July 2022 and had responsibility for our fiber-based products business from July 2019 to November 2021.
+Added: Colwell previously served as the president of Kadant Carmanah Design (Carmanah), a division of our subsidiary Kadant Canada Corp., from 2013 to 2019.
+Added: Carmanah, which is part of our wood processing business, designs and manufactures equipment for the OSB industry.
+Added: Colwell previously served as the president and chief executive officer of Carmanah Design and Manufacturing Inc.
+Added: from April 2010 until its acquisition by us in November 2013.
Flynn has been our senior vice president since August 2022 and provides strategic management support, including management of special projects.
−Removed: He previously served as our vice president from July 2019 to July 2022 with supervisory responsibility for our stock-preparation business, which is part of our Industrial Processing segment, and our baling product line, which is part of our Material Handling segment.
+Added: He previously served as our vice president from July 2019 to July 2022 with supervisory responsibility for our fiber processing business, which is part of our Industrial Processing segment, and our baling product line, which is part of our Material Handling segment.
Prior to July 2019, Mr.
Flynn served as the president of our Kadant Black Clawson LLC subsidiary from 2003 to 2019.
−Removed: Kadant Black Clawson manufactures stock-preparation equipment primarily for the pulp and paper industry.
+Added: Kadant Black Clawson manufactures fiber processing equipment primarily for the pulp and paper industry.
Blanchard has been our vice president responsible for our Material Handling segment since August 2022, and prior to that, had supervisory responsibility for our conveying and vibratory equipment and fiber-based products businesses from November 2021 to July 2022.
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SMH, which is part of our Material Handling segment, designs and manufactures conveyors and vibratory feeders for bulk material handling in the aggregates, mining and food industries.
−Removed: Colwell has been our vice president responsible for our Industrial Processing segment since August 2022, and prior to that, had supervisory responsibility for our wood processing business, which is part of our Industrial Processing segment, from July 2019 to July 2022.
−Removed: He previously had responsibility for our fiber-based products business from July 2019 to November 2021.
−Removed: Colwell previously served as the president of Kadant Carmanah Design (Carmanah), a division of our subsidiary Kadant Canada Corp., from 2013 to 2019.
−Removed: Carmanah, which is part of our wood processing business, designs and manufactures equipment for the oriented strand board industry.
−Removed: Colwell previously served as the president and chief executive officer of Carmanah Design and Manufacturing Inc.
−Removed: from April 2010 until its acquisition by us in November 2013.
Westerhout has been our vice president responsible for our Flow Control segment since November 2021.
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.